Overall Equipment Effectiveness

Overall Equipment Effectiveness (OEE) is a metric used to demonstrate the true effectiveness of an asset in terms of availability, performance and quality.It is an enabler for teams to problem solve, drive cross functional teamwork and structure maintenance for best performance.

Purpose

Its primary purpose is to help teams identify losses on their bottlenecks and focus on ways to attack them.

Focussed activities to improve the process bottlenecks

Teamwork between operators and artisans

Improved unit cost through revenue opportunities

Re-allocation of resource

Central maintenance focused on resolution of complex issues

Focussed on Planned Maintenance

OEE focusses on the elimination of the 6 Big Losses:

Breakdowns

Setup and Adjustments

Minor Stops

Reduced Speed

Start-up Yield

Production Rejects.

From the Value Stream activities and the capacity analysis, OEE is deployed on the identified bottlenecks to improve performance.

Any shift in capacity leading to more volume must be managed through pull systems and buffer management.